When is the Liquidated Damages fee due to Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages | $10,000 multiplied by number of undeveloped Basecamp studios | Immediately after notice from us | Only payable if your ADA is terminated and you have not developed all Basecamp studios you agreed to develop under the ADA. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the liquidated damages fee is due immediately after notice from Basecamp Fitness. This fee is only payable if the franchisee's Area Development Agreement (ADA) is terminated and they have not developed all of the Basecamp Fitness studios they agreed to develop under the ADA.
The amount of the liquidated damages is $10,000 multiplied by the number of undeveloped Basecamp Fitness studios. For example, if a franchisee agreed to develop five studios but only opened two before their ADA was terminated, they would owe $30,000 in liquidated damages (3 undeveloped studios x $10,000).
This fee serves to compensate Basecamp Fitness for losses incurred due to the franchisee's failure to meet their development obligations. It is important for prospective franchisees to carefully consider their ability to fulfill the development schedule outlined in the ADA before signing the agreement, as failure to do so can result in significant financial penalties.